The operator is bolstering its German mobile presence with the acquisition of mobilezone Deutschland and a five-year extension of its exclusive MediaMarktSaturn partnership
German operator freenet’s wholly owned subsidiary freenet DLS has signed a purchase agreement to acquire 100 per cent of Cologne-based mobilezone Deutschland, as well as the operating subsidiaries mobilezone GmbH, Cologne and mobilezone exchange GmbH, of Bochum.
According to the operator, in 2024, mobilezone Deutschland gained and retained over one million customers through established brands such as sparhandy.de. Freenet will also gain around 300 employees and sites in Cologne, Bochum and Münster as part of the deal to acquire the independent mobile provider.
With brands like Sparhandy, Deinhandy, Handystar and HIGH, the company generated revenues of almost €780 million and EBITDA of approximately €30 million in 2024. However, according to a report by WirtschaftsWoche, in the first half of 2025, Mobilezone generated 72% of its revenue in Germany and the German business has been weakening for some time, which led the company to issue a profit warning at the end of December 2024.
So while the deal is logical in terms of vertical integration in distribution, strengthening retail presence and sales reach in Germany, and adding a portfolio of brands, it still has some risks on the horizon. Mobilezone is a business in need of a turnaround. It will also take time to integrate, rationalise brands, reduce duplicative costs and align sales channels. Freenet is looking getting a return by 2026, suggesting the deal will “strengthen the strategic sales power” of the operator but with an EBITDA margin of around 3-4%, margin expansion will likely depend on execution and integration.
“The acquisition of mobilezone Deutschland is a strategically valuable addition to our existing sales portfolio. It strengthens our presence in the German mobile communications market and deepens our relationships with network operators,” said freenet CEO Robin Harries (above).
The acquisition is subject to the usual antitrust approvals. Upon completion of the transaction, a purchase price of approximately €230 million will be payable. The transaction is expected to be completed in the fourth quarter of 2025. “The acquisition will be financed through committed credit lines, and its EBITDA and free cash flow profile meets our requirements for value-oriented capital allocation in the interests of our shareholders,” added freenet CFO Ingo Arnold.
Almost parallel to the acquisition, freenet’s sales partnership with MediaMarktSaturn Deutschland was extended for another five years. Freenet therefore remains the exclusive partner for the distribution of its own tariffs in all mobile networks, the original tariffs of the network operators Telekom and Vodafone, as well as other proprietary mobile products and services in all MediaMarkt and Saturn stores in Germany and their online channels.
By locking in exclusive distribution via MediaMarktSaturn for five years, freenet is essentially doubling down on one major sales channel. However, if that channel underperforms or consumer behaviour shifts to things like more direct online or different retail partnerships, freenet could be impacted as a result.
Observers also point out that the exclusivity might limit flexibility in channel strategy or negotiating leverage with MediaMarktSaturn. That said, the distributor has skin in the game and will need to make the partnership work as well.
